Category: Loan Page 12 of 21

How to Decide Debt Repayment Method

On December 7, 2020

Once you have fallen into debt, it seems all but impossible to get out of it. Do not lose hope because there is still a way to overcome the mounting burden of debt. When you are juggling with multiple debts, you have two methods to consider: debt avalanche or debt snowball.

A debt avalanche method will allow you to settle your debts from high interest to lower interest debt regardless of the balance. In contrast, a debt snowball method will allow you to pay off from the smallest balance to the largest balance irrespective of interest rates.

It can be not very clear to find out which method is more appropriate for your financial condition and goals. For some people, the debt avalanche method is more ideal because you can save money in interest while others will find the other method more ideal because it helps build motivation.

When you have a lot of debts like 24 hour loans in Ireland, credit card bills, and auto loans, you will scratch your head before arriving at a decision. You might be confused about whether you should pay high-interest debs first or low-interest debts first. Do away with all of your worries because below are the reasons explained when which will be an ideal choice.

When should you pay off debts with high interest first?

Most of the people find it beneficial to pay off debts with high interest first. This makes sense because you can save a lot of money in interest. Debt with high-interest rate will cost you much more if you do not pay them off as soon as possible.

The money you save in interest will pay you off in the long run. You can use that money toward the repayment of other debts. However, not everyone particularly fits in this scenario. Your high-interest debt is likely the largest.

If you try, your high-interest debt is likely the largest debt. If you try to pay it off first, it might take more than a year to get settled. Of course, paying your high-interest debt plan will not stand you in the stead. It will be painful when you find that you are not reaching your goal sooner. You will get demotivated and eventually give up in the middle.

When should you settle your small debts first?

This method will be an ideal choice when you find it motivating you. Of course, you will have to look over your financial condition before opting for the plan. If your budget does not have enough wiggle room, you will undoubtedly continue to repay small debts first.

Not only will it keep you motivated, but it will also help you reach your goal faster. However, you will still end up paying a lot of money in interest. This is because you will pay larger debts in the end.

Sometimes you may need to follow a balanced approach

If you want to reach your financial goal, you will have to be more strategic and balanced. You may be buried under several debts, but all of them may have more or less similar interest rates. For instance, credit card bills and outstanding cash loans will not show a significant difference in interest rates, and you may have no other debts except a few small loans.

So, you can decide which to pay off first quickly. A good rule of thumb says that before you decide on a debt repayment method, you should find out which will yield benefit to you. If you can save money with the debt avalanche method, go ahead with it. Otherwise, opt for the other method.

Remember that you cannot back out once you have chosen the plan. It is always advisable to opt for the plan carefully. Otherwise, you will not stay focused and end up being in a never-ending cycle of debt.

If you have stuck with multiple debts and want to get out of the, you will have to decide which repayment method will suit you. Analyse your financial condition and then make a decision. Do not forget that you will have to stick to your plan until you have settled all of your dues.

Should you consider financing a wedding through personal wedding loans?

By admin

On December 7, 2020

In Loan

We cannot deny that weddings are expensive yet one of the most memorable days in any person’s life. It is a new beginning in one’s life. Maybe your parents might have saved funds to finance your wedding, or you may have done it for yourself. An average wedding in the UK costs around 31,000 pounds and this is indeed a considerable amount. Sometimes you may find it challenging to manage this amount of money to enjoy your wedding.

Wedding loans come to your rescue and help you to get through the dream day. But this sounds so easy, is it really? Let’s find out.

An introduction to Wedding Loans

It is a personal loan that can be borrowed to meet the wedding expenses. You can repay the amount in fixed monthly instalments which will be decided by your lender. You will obviously have to pay the interest rate with the loan you have borrowed. Do you know a wedding loan is a collateral-free loan? It means that your interest rate will be much higher than secured loans.

If you fail to repay the money, then your lender cannot repossess any asset that you own but can send you a legal notice. You can also be issued with County Court Judgement (CCJ) which will affect your credit score and report for six years.

What are the advantages of a wedding loan?

If you have considered lending some funds for your wedding, it has certain benefits which you should know of. The first one is that it is easy to apply. You just need to visit the website and file an online application. You can also get flexibility on deciding the terms to allow you a budget for the payment schedule.

If you can pay the loan on short notice, then you can get less interest rate. But, a higher interest rate means shorter monthly instalments. A personal loan can also help rebuild your credit score.

Wedding loan with bad credit

To solve your problem, you can get a loan with a bad credit score. But you need to keep in mind that you will not get the best loan deals. You will get a higher interest rate than the average rate.

How to apply for a wedding loan?

You can easily apply online through the website and provide details such as income, age, credit score, etc. They will want to know your employment status to know if you can pay back the loan amount or not. After assessing your application, you will hear back from your lender within 24 hours.

What details must you know about?

Wedding loans range between 2500 pounds to 25000 pounds for two years to five years. You get 3.5% APR and fixed monthly instalments. There are no hidden charges and arrangement fees. You need to keep in mind how you will repay the amount in the given term. The maximum APR you can get is 34.9%.

What to do if your wedding is cancelled?

First, we recommend you is to get wedding insurance before taking any loan. The reason behind it is that you will have to pay the loan in the full amount and there is no refund. If you have used the money to pay for some part of your wedding, then you can claim it back through wedding insurance.

Are there any alternatives to a wedding loan?

If you don’t want to borrow a personal loan, then you can opt for some other options.

The first option is to get a 0% credit card, which is one of the affordable ways to pay for your wedding. Many credit cards offer a 0% interest rate for mid-sized purchases. But you should keep in mind that an interest-free credit card can be costly. Make sure to pay back the full amount before the interest-free days’ end; otherwise, you will be charged.

Another option is cashback or rewards credit cards. This way, you can get a percentage of what you have spent in the form of cash or vouchers. This is not an excellent way to save money, but still, you can get some of the money back from what you spent. You need to take care of the repayment period as your interest rate can be increased than the value or reward you are getting than the card.

You can also get small loans for small instant expenses ranging between 50 pounds to 1000 pounds. It is only for some urgent expenses which can cause you sleepless nights. You can get small loans in Ireland and any of its part such as Limerick, Dublin, or Northern Ireland.

When you don’t have any funds to finance your wedding, then a personal wedding loan can help live your dream day. You just need to take care of the high-interest rate and monthly instalments before deciding to borrow money. Plan ahead and smartly.

Does Lending Marketplace Offer Sustainable Help to Low Credit People?

By admin

On December 3, 2020

In Loan

Sometimes, things are in our way, and we have to look beyond our capacity. It happens in our financial life too. When we are earning sufficient salary, everything seems more in our control, and we can do everything.

In contrast, when we lost the job, everything becomes difficult to achieve, and even we struggle to meet our personal ends too. In such a scenario, we look towards the loan options and start exploring the lending products available.

The individuals with blemished credit reports usually practice this and search hard online by putting queries like how to get loans with bad credit or where to get a loan in Ireland with bad credit.

They have to go towards the lending marketplace and find out the options available irrespective of their past credit mistakes. Fortunately, the direct lending market in Ireland has loans for people with poor credit scores.

Through this blog, the emphasis is putting on some pointers where the bad credit loans are available without much complexity.

Bad credit specialises the loan deals

Gone was the time when the loan deals were based on the credit scores of the borrowers. If the credit score was bad, rejection becomes their destiny. It meant that the people with good credit scores gained the upper hand.

Nowadays, the trend has changed, and the bad credit scores of the borrowers are now specialising the loan deals. Here, we mean that the lenders are currently preparing the loan deals, especially for the people with poor credit scores.

For example, lenders are advertising their products as poor credit loans, bad credit loans or loans for bad credit people.

The ratio of loan approval is increasing

This is quite surprising but fortunately becoming a reality at the Irish lending marketplace. The loan providers are approving the loan applications of the poor credit people in the large numbers.

The fascinating thing about it is that they are not insisting on the presence of the guarantor and the collection of the loan security. They are approving their loan application based on their income status. It evidently proves that the loan deals are available according to the affordability factor.

Borrowers with adverse credit scores can borrow the amount, which they can afford and repay within the given schedule.

The dominance of Lenders offering bad credit loans

With the maximum deals available for the people with poor credit scores and the rate of approval is also higher, the marketplace in Ireland has seen the dominance of the bad credit lenders.

Majority of the direct lending companies like LitewayLoans, OnlineCashFinances and many more are preparing the exclusive loan deals like bad credit loans. You can see at the websites of almost every direct lender in Ireland that such lending products are available easily.

Moreover, suppose the loan products are targeting different class of borrowers such as the unemployed people. In that case, they are also accepting their applications with poor credit scores-for example, the unemployed loans for bad credit people.

Fewer obligations make the task easier

The loans for the people with bad credit are generally available with the small amount to borrow. Thus, they impose fewer obligations besides the loan deals.

This means the borrowers have the chance of gaining the approval quickly because they do not have to rush towards near and dear ones to take their loan guarantee. They can apply directly by visiting the lender’s website and filing single-page online form.

On a similar note, the bad credit borrowers do not need to put collateral against the borrowing amount. Since they can request desired funds only based on their income status, lenders do not ask for unnecessary obligations to fulfil.

Conclusion

Hence, these pointers indicate that the people with poor credit scores have massive things to gain. We are telling here about the loan approval because it is vital as gold for these borrowers.

With rejections from the conventional lenders, the bad credit people find tough to eradicate their financial woes. By getting higher approval rates from the direct lenders, they can protect their finances, and that will be good times.

A bad credit score is something like a negative thing against your profile. Still, the direct lending marketplace in Ireland has shown the interest and providing the much-needed financial assistance.